Euro zone yields rose \u200bon Monday after U.S. President Donald \u200bTrump’s swift rejection of Iran’s \u200cresponse \u200bto a U.S. peace proposal sent oil prices surging and underscored worries that inflation will force \u200cmeaningful rate hikes from the European Central Bank. Germany’s rate-sensitive two-year yield rose just over 2 basis points to 2.62% as markets were close to pricing \u200cin an ECB rate hike at its June meeting. They are \u200cfully pricing two 25 basis point hikes across the ECB’s three meetings to September.<\/p>\n
Germany’s 10-year yield, the euro zone benchmark, rose 2 bps to 3.02%. Benchmark Brent crude June \u2060futures \u200bwere 3.7% higher \u2060at $105 a barrel on Monday, below their late April highs but well above pre-war levels, \u2060and ECB policymakers have warned they are ready to act should high energy \u200bprices spill over into broader inflation. Governing Council Member Martin Kocher said \u2060in an interview published on Monday that “if the situation does not improve significantly, there will be \u2060no \u200bavoiding an interest rate move in the near future.”<\/p>\n
“What’s clear is that if the war drags on and energy prices remain high, \u2060the risk of second-round effects will increase,” said Kocher, who is also the \u2060Austrian central \u2060bank governor. Other euro zone yields were moving broadly similarly to German ones. Italy’s 10-year yield was up 3 \u200cbasis \u200cpoints at 3.77%.<\/p>\n
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)<\/p>\n","protected":false},"excerpt":{"rendered":"Euro zone yields rose \u200bon Monday after U.S. President Donald \u200bTrump’s swift rejection of Iran’s \u200cresponse \u200bto a…\n","protected":false},"author":2,"featured_media":37702,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2480],"tags":[24580,24578,24581,4003,2487,2486,2485,1629,92,24577,303,172,24579,24557,7177],"class_list":{"0":"post-37701","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-euro-zone","8":"tag-response","9":"tag-austrian","10":"tag-benchmark-brent","11":"tag-donald","12":"tag-euro-area","13":"tag-euro-zone","14":"tag-eurozone","15":"tag-german","16":"tag-germany","17":"tag-governing-council","18":"tag-iran","19":"tag-italy","20":"tag-kocher","21":"tag-martin-kocher","22":"tag-u-s"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts\/37701","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/comments?post=37701"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts\/37701\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/media\/37702"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/media?parent=37701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/categories?post=37701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/tags?post=37701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}